Rusty Costanza/The Times-PicayuneProposals to expand streetcar operations in New Orleans may fare better when factors such as livability are considered.

The Obama administration is changing the criteria that determine federal financing for transportation projects in a way that could give proposals to expand streetcar operations in New Orleans a leg up over competing projects elsewhere.

Susan Poag/The Times-Picayune archive'This is great news for transit in New Orleans and specifically for our streetcars,' Rep. Anh 'Joseph' Cao said.

Instead of relying almost entirely on deciding which projects are cost-effective and will save commuters time on their way to and from work, the new criteria add other factors such as livability issues, economic development and environmental benefits.

"This is great news for transit in New Orleans and specifically for our streetcars," Rep. Anh "Joseph" Cao, R-New Orleans, said. "This announcement is another great example of the president's focus on smart development projects that combine efficiency improvements with aesthetics like the historic streetcars of our great city."

According to federal transportation officials, New Orleans streetcar projects didn't fare particularly well under the old criteria but ought to do considerably better when factors such as livability are applied.

"This means quicker and better funding for streetcars, light rail, and bus projects that improve transportation, revive local economies, and reduce global warming pollution," said Rep. Earl Blumenauer, D-Ore., who pressed for the changes. "After much hard work with the administration and my congressional colleagues, this is an exciting outcome that will create better and more transportation opportunities."

In the announcement of the new transit financing criteria, Transportation Secretary Ray LaHood said the expanded criteria will affect future spending decisions by the Federal Transit Administration.

"Our new policy for selecting major transit projects will work to promote livability rather than hinder it," LaHood said. "We want to base our decisions on how much transit helps the environment, how much it improves development opportunities and how it makes our communities better places to live."